WASHINGTON: Walt Disney has agreed to pay 10 million dollars to settle allegations by the United States Federal Trade Commission regarding unlawful collection of children's personal data.

The settlement addresses claims that Disney allowed personal information to be gathered from children watching kid-directed videos on YouTube without proper parental notification or consent.

Axios first reported the settlement details which were subsequently confirmed by a Disney spokesperson.

Federal Trade Commission allegations stated that Disney failed to designate certain YouTube videos as being made for children when uploading them to the platform.

This mislabeling allegedly enabled Disney to collect personal data from viewers under age 13 through YouTube's platform.

The collected information was then used for targeted advertising directed at children according to the US complaint.

Disney was accused of violating the US Children's Online Privacy Protection Rule through these practices.

This rule mandates that online services directed at children under 13 must notify parents about personal information collection and obtain verifiable parental consent.

The proposed settlement order requires Disney to implement an audience designation program ensuring proper classification of videos as 'made for kids' where appropriate.

A Disney spokesperson clarified that the settlement only involves content distribution on YouTube's platform and not Disney-owned digital platforms.

The company emphasized its long tradition of embracing the highest standards of compliance with children's privacy laws.

Disney remains committed to investing in tools needed to maintain leadership in children's privacy protection according to their statement. - Reuters